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UNITED STATES SECURITIES AND EXCHANGE COMMISSION


Washington, D.C. 20549





Form 10-Q





|           |  |                                                                                             
|---------- |  | --------------------------------------------------------------------------------------------
|(Mark One) |  |                                                                                             
|þ          |  | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
    OF THE SECURITIES EXCHANGE ACT OF 1934 
|           |  | For the quarterly period ended March 31, 2005                                               
|or        
|          
|o          |  | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
    OF THE SECURITIES EXCHANGE ACT OF 1934
|           |  | For the transition period
    from             to             .                             

Commission file number: 01-10920





Fisher Scientific International Inc.


(Exact name of registrant as specified in its charter)


|                                                                            |  |                                                   
|--------------------------------------------------------------------------- |  | --------------------------------------------------
|Delaware(State or other jurisdiction of
    incorporation or organization)  |  | 02-0451017(I.R.S. Employer
    Identification No.)
|                                                                           
|Liberty Lane, Hampton New Hampshire(Address of principal executive offices) |  | 03842(Zip Code)                                   

Registrants telephone number, including area code:


(603) 926-5911





þ o


þ o












---










FISHER SCIENTIFIC INTERNATIONAL INC.


FORM 10-Q


For the Quarter Ended March 31, 2005


INDEX


|                                                                       |  |   |    |                                                                                           |  |          |    | 
|---------------------------------------------------------------------- |  | - | -- | ----------------------------------------------------------------------------------------- |  | -------- | -- | 
|                                                                       |  |   |    |                                                                                           |  | Page No. |   
|                                                                       |  |   |    |                                                                                           |  |          |   
|Part I                                                                 |  |  |    | FINANCIAL INFORMATION:                                                                    |  |          |    | 
|Item 1                                                                 |  |  |    | Financial Statements:                                                                     |  |          |    | 
|                                                                       |  |   |    | Introduction to the Financial Statements                                                  |  |          | 2  | 
|                                                                       |  |   |    | Statement of Operations  Three
    Months Ended March 31, 2005 and 2004                  |  |          | 3  | 
|                                                                       |  |   |    | Balance Sheet  March 31,
    2005 and December 31, 2004                                  |  |          | 4  | 
|                                                                       |  |   |    | Statement of Cash Flows  Three
    Months Ended March 31, 2005 and 2004                  |  |          | 5  | 
|                                                                       |  |   |    | Statement of Changes in Stockholders
    Equity  Three Months Ended March 31, 2005      |  |          | 6  | 
|                                                                       |  |   |    | Notes to Financial Statements                                                             |  |          | 7  | 
|Item 2                                                                 |  |  |    | Managements Discussion and Analysis
    of Financial Condition and Results of Operations |  |          | 15 | 
|Item 3                                                                 |  |  |    | Quantitative and Qualitative Disclosures
    About Market Risk                            |  |          | 19 | 
|Item 4                                                                 |  |  |    | Controls and Procedures                                                                   |  |          | 20 | 
|Part II                                                                |  |  |    | OTHER INFORMATION:                                                                        |  |          |    | 
|Item 5                                                                 |  |  |    | Other Information                                                                         |  |          | 21 | 
|Item 6                                                                 |  |  |    | Exhibits                                                                                  |  |          | 21 | 
|SIGNATURE                                                              |  |   | 22 |                                                                                          
|Certifications                                                         |  |   |    |                                                                                          
|Ex-10.01 Share Sale and Purchase Agreement                            
|Ex-10.03 Second Amend. to the Executive Retirement and Savings Program
|Ex-10.04 First Amend. to Retirement Plan for Non-Employee Directors   
|Ex-31.01 Section 302 Certification of the C.E.O.                      
|Ex-31.02 Section 302 Certification of the C.F.O.                      
|Ex-32.01 Section 906 Certification of the C.E.O.                      
|Ex-32.02 Section 906 Certification of the C.F.O.                      



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##### Table of Contents



FISHER SCIENTIFIC INTERNATIONAL INC.





PART 1  FINANCIAL INFORMATION







|         |                     
|-------- | --------------------
|Item 1  | Financial Statements




INTRODUCTION TO THE FINANCIAL STATEMENTS






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FISHER SCIENTIFIC INTERNATIONAL INC.





STATEMENT OF OPERATIONS


(In millions, except per share data)


(Unaudited)


|                                                                                   |                                     |                    |         |       |      |   |         |      | 
|---------------------------------------------------------------------------------- | ----------------------------------- | ------------------ | ------- | ----- | ---- | - | ------- | ---- | 
|                                                                                   |                                     | Three Months Ended |        
|                                                                                   |                                     | March 31,          |        
|                                                                                   |                                     |                    |        
|                                                                                   |                                     | 2005               |         |       | 2004 |  
|                                                                                   |                                     |                    |         |       |      |  
|Sales                                                                              |                                     | $                  | 1,351.2 |       |      | $ | 1,003.1 |     
|Cost of sales                                                                      |                                     |                    | 901.8   |       |      |   | 732.5   |     
|Selling, general and administrative expense                                        |                                     |                    | 305.3   |       |      |   | 204.0   |     
|Restructuring expense                                                              |                                     |                    | 8.3     |       |      |   |        |     
|                                                                                   |                                     |                    |         |       |      |  
|Operating income                                                                   |                                     |                    | 135.8   |       |      |   | 66.6    |     
|Interest expense                                                                   |                                     |                    | 30.6    |       |      |   | 22.0    |     
|Other income, net                                                                  |                                     |                    | (1.0    | )     |      |   | (0.6    | )   
|                                                                                   |                                     |                    |         |       |      |  
|Income before income taxes                                                         |                                     |                    | 106.2   |       |      |   | 45.2    |     
|Income tax provision                                                               |                                     |                    | 30.1    |       |      |   | 12.4    |     
|                                                                                   |                                     |                    |         |       |      |  
|Income from continuing operations                                                  |                                     |                    | 76.1    |       |      |   | 32.8    |     
|Income from discontinued operations, net of tax of $0.2 and
    $0.0, respectively |                                     |                    | 0.9     |       |      |   | 1.8     |     
|                                                                                   |                                     |                    |         |       |      |  
|Net income                                                                         |                                     | $                  | 77.0    |       |      | $ | 34.6    |     
|                                                                                   |                                     |                    |         |       |      |  
|Basic net income per common share:                                                 |                                     |                    |         |       |      |   |         |     
|                                                                                   | Income from continuing operations   |                    | $       | 0.63  |      |   | $       | 0.51 | 
|                                                                                   | Income from discontinued operations |                    |         | 0.01  |      |   |         | 0.03 | 
|                                                                                   |                                     |                    |         |       |      |  
|                                                                                   | Net income                          |                    | $       | 0.64  |      |   | $       | 0.54 | 
|                                                                                   |                                     |                    |         |       |      |  
|Diluted net income per common share:                                               |                                     |                    |         |       |      |   |         |     
|                                                                                   | Income from continuing operations   |                    | $       | 0.60  |      |   | $       | 0.48 | 
|                                                                                   | Income from discontinued operations |                    |         | 0.01  |      |   |         | 0.03 | 
|                                                                                   |                                     |                    |         |       |      |  
|                                                                                   | Net income                          |                    | $       | 0.61  |      |   | $       | 0.51 | 
|                                                                                   |                                     |                    |         |       |      |  
|Weighted average common shares outstanding:                                        |                                     |                    |         |       |      |   |         |     
|                                                                                   | Basic                               |                    |         | 119.6 |      |   |         | 63.6 | 
|                                                                                   |                                     |                    |         |       |      |  
|                                                                                   | Diluted                             |                    |         | 126.0 |      |   |         | 68.4 | 
|                                                                                   |                                     |                    |         |       |      |  



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FISHER SCIENTIFIC INTERNATIONAL INC.





BALANCE SHEET


(In millions, except share data)


|                                     |                                                                                                                                                                                                                                |                            |                                            |         |              |         |         |         |         |         | 
|------------------------------------ | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | -------------------------- | ------------------------------------------ | ------- | ------------ | ------- | ------- | ------- | ------- | ------- | 
|                                     |                                                                                                                                                                                                                                | March 31,                  |                                            |         | December 31, |        
|                                     |                                                                                                                                                                                                                                | 2005                       |                                            |         | 2004         |        
|                                     |                                                                                                                                                                                                                                |                            |                                            |         |              |        
|                                     |                                                                                                                                                                                                                                | (Unaudited)                |                                            |         |             
|ASSETS                              
|Current assets:                      |                                                                                                                                                                                                                                |                            |                                            |         |              |         |         |        
|                                     | Cash and cash equivalents                                                                                                                                                                                                      |                            | $                                          | 237.3   |              |         | $       | 162.5   |        
|                                     | Accounts receivable, net                                                                                                                                                                                                       |                            |                                            | 697.3   |              |         |         | 632.8   |        
|                                     | Inventories                                                                                                                                                                                                                    |                            |                                            | 600.2   |              |         |         | 622.4   |        
|                                     | Assets held for sale                                                                                                                                                                                                           |                            |                                            | 95.7    |              |         |         | 94.6    |        
|                                     | Other current assets                                                                                                                                                                                                           |                            |                                            | 269.0   |              |         |         | 264.5   |        
|                                     |                                                                                                                                                                                                                                |                            |                                            |         |              |        
|                                     |                                                                                                                                                                                                                                | Total current assets       |                                            |         | 1,899.5      |         |         |         | 1,776.8 |        
|Property, plant and equipment        |                                                                                                                                                                                                                                |                            | 767.8                                      |         |              |         | 785.4   |        
|Goodwill                             |                                                                                                                                                                                                                                |                            | 3,736.8                                    |         |              |         | 3,756.9 |        
|Intangible assets                    |                                                                                                                                                                                                                                |                            | 1,550.5                                    |         |              |         | 1,565.0 |        
|Other assets                         |                                                                                                                                                                                                                                |                            | 205.3                                      |         |              |         | 206.1   |        
|                                     |                                                                                                                                                                                                                                |                            |                                            |         |              |        
|                                     |                                                                                                                                                                                                                                | Total assets               |                                            | $       | 8,159.9      |         |         | $       | 8,090.2 |        
|                                     |                                                                                                                                                                                                                                |                            |                                            |         |              |        
|                                    
|LIABILITIES AND STOCKHOLDERS EQUITY
|Current liabilities:                 |                                                                                                                                                                                                                                |                            |                                            |         |              |         |         |        
|                                     | Short-term debt                                                                                                                                                                                                                |                            | $                                          | 57.7    |              |         | $       | 39.4    |        
|                                     | Accounts payable                                                                                                                                                                                                               |                            |                                            | 468.6   |              |         |         | 468.4   |        
|                                     | Liabilities held for sale                                                                                                                                                                                                      |                            |                                            | 8.6     |              |         |         | 8.3     |        
|                                     | Accrued and other current liabilities                                                                                                                                                                                          |                            |                                            | 436.1   |              |         |         | 453.7   |        
|                                     |                                                                                                                                                                                                                                |                            |                                            |         |              |        
|                                     |                                                                                                                                                                                                                                | Total current liabilities  |                                            |         | 971.0        |         |         |         | 969.8   |        
|Long-term debt                       |                                                                                                                                                                                                                                |                            | 2,285.5                                    |         |              |         | 2,309.2 |        
|Other liabilities                    |                                                                                                                                                                                                                                |                            | 943.1                                      |         |              |         | 941.2   |        
|                                     |                                                                                                                                                                                                                                |                            |                                            |         |              |        
|                                     |                                                                                                                                                                                                                                | Total liabilities          |                                            |         | 4,199.6      |         |         |         | 4,220.2 |        
|                                     |                                                                                                                                                                                                                                |                            |                                            |         |              |        
|Commitments and contingencies        |                                                                                                                                                                                                                                |                            |                                            |         |              |         |         |        
|Stockholders equity:                |                                                                                                                                                                                                                                |                            |                                            |         |              |         |         |        
|                                     | Preferred stock ($0.01 par value; 15,000,000 shares
    authorized; none outstanding)                                                                                                                                          |                            |                                            |        |              |         |         |        |        
|                                     | Common stock ($0.01 par value; 500,000,000 shares
    authorized;
    120,204,220 and 118,928,952 shares issued; 119,949,245 and
    118,673,977 shares outstanding at March 31, 2005 and
    December 31, 2004, respectively) |                            |                                            | 1.1     |              |         |         | 1.1     |        
|                                     | Capital in excess of par value                                                                                                                                                                                                 |                            |                                            | 4,053.0 |              |         |         | 4,006.1 |        
|                                     | Accumulated deficit                                                                                                                                                                                                            |                            |                                            | (183.1  | )            |         |         | (260.1  | )      
|                                     | Accumulated other comprehensive income                                                                                                                                                                                         |                            |                                            | 93.3    |              |         |         | 126.9   |        
|                                     | Treasury stock, at cost (254,975 shares at March 31,
    2005 and December 31, 2004)                                                                                                                                           |                            |                                            | (4.0    | )            |         |         | (4.0    | )      
|                                     |                                                                                                                                                                                                                                |                            |                                            |         |              |        
|                                     |                                                                                                                                                                                                                                | Total stockholders equity |                                            |         | 3,960.3      |         |         |         | 3,870.0 |        
|                                     |                                                                                                                                                                                                                                |                            |                                            |         |              |        
|                                     |                                                                                                                                                                                                                                |                            | Total liabilities and stockholders equity |         | $            | 8,159.9 |         |         | $       | 8,090.2 | 
|                                     |                                                                                                                                                                                                                                |                            |                                            |         |              |        



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FISHER SCIENTIFIC INTERNATIONAL INC.





STATEMENT OF CASH FLOWS


(In millions)


(Unaudited)


|                                                             |                                                                                   |                                       |                          |       |       |       |       |        |        |       |  
|------------------------------------------------------------ | --------------------------------------------------------------------------------- | ------------------------------------- | ------------------------ | ----- | ----- | ----- | ----- | ------ | ------ | ----- | -
|                                                             |                                                                                   | Three Months Ended                    |                         
|                                                             |                                                                                   | March 31,                             |                         
|                                                             |                                                                                   |                                       |                         
|                                                             |                                                                                   | 2005                                  |                          |       | 2004  |      
|                                                             |                                                                                   |                                       |                          |       |       |      
|Cash flows from operating activities:                        |                                                                                   |                                       |                          |       |       |       |       |       
|                                                             | Net income                                                                        |                                       | $                        | 77.0  |       |       | $     | 34.6   |       
|                                                             | Adjustments to reconcile net income to cash provided by
    operating activities: |                                       |                          |       |       |       |       |        |       
|                                                             |                                                                                   | Depreciation and amortization         |                          |       | 47.8  |       |       |        | 24.1   |      
|                                                             |                                                                                   | Deferred income taxes                 |                          |       | 17.1  |       |       |        | 3.6    |      
|                                                             |                                                                                   | Other noncash expenses                |                          |       | 0.6   |       |       |        |       |      
|                                                             |                                                                                   | Restructuring expense                 |                          |       | 6.3   |       |       |        |       |      
|                                                             |                                                                                   | Changes in working capital            |                          |       |       |       |       |        |        |      
|                                                             |                                                                                   |                                       | Accounts receivable, net |       |       | (69.7 | )     |        |        | (15.4 | )
|                                                             |                                                                                   |                                       | Inventories              |       |       | 17.5  |       |        |        | 12.4  |  
|                                                             |                                                                                   |                                       | Accounts payable         |       |       | 2.5   |       |        |        | 12.5  |  
|                                                             |                                                                                   |                                       | Other assets             |       |       | (9.8  | )     |        |        | (2.0  | )
|                                                             |                                                                                   |                                       | Other liabilities        |       |       | (18.1 | )     |        |        | (3.8  | )
|                                                             |                                                                                   |                                       |                          |       |       |      
|                                                             |                                                                                   | Cash provided by operating activities |                          |       | 71.2  |       |       |        | 66.0   |      
|                                                             |                                                                                   |                                       |                          |       |       |      
|Cash flows from investing activities:                        |                                                                                   |                                       |                          |       |       |       |       |       
|                                                             | Acquisitions, net of cash acquired                                                |                                       |                          | (6.7  | )     |       |       | (331.2 | )     
|                                                             | Capital expenditures                                                              |                                       |                          | (28.0 | )     |       |       | (13.1  | )     
|                                                             | Proceeds from sale of property, plant and equipment                               |                                       |                          | 5.7   |       |       |       |       |       
|                                                             | Other investments                                                                 |                                       |                          | (1.0  | )     |       |       | (4.1   | )     
|                                                             |                                                                                   |                                       |                          |       |       |      
|                                                             |                                                                                   | Cash used in investing activities     |                          |       | (30.0 | )     |       |        | (348.4 | )    
|                                                             |                                                                                   |                                       |                          |       |       |      
|Cash flows from financing activities:                        |                                                                                   |                                       |                          |       |       |       |       |       
|                                                             | Proceeds from stock options exercised                                             |                                       |                          | 42.2  |       |       |       | 18.2   |       
|                                                             | Long-term debt proceeds                                                           |                                       |                          |      |       |       |       | 330.3  |       
|                                                             | Payments of long-term debt                                                        |                                       |                          | (4.1  | )     |       |       | (80.2  | )     
|                                                             | Changes in short-term debt, net                                                   |                                       |                          | (0.9  | )     |       |       | (4.0   | )     
|                                                             | Deferred financing costs                                                          |                                       |                          | (0.4  | )     |       |       | (8.8   | )     
|                                                             |                                                                                   |                                       |                          |       |       |      
|                                                             |                                                                                   | Cash provided by financing activities |                          |       | 36.8  |       |       |        | 255.5  |      
|                                                             |                                                                                   |                                       |                          |       |       |      
|Effect of exchange rate changes on cash and cash equivalents |                                                                                   |                                       | (3.2                     | )     |       |       | (0.5  | )     
|                                                             |                                                                                   |                                       |                          |       |       |      
|Net change in cash and cash equivalents                      |                                                                                   |                                       | 74.8                     |       |       |       | (27.4 | )     
|Cash and cash equivalents  beginning of period              |                                                                                   |                                       | 162.5                    |       |       |       | 83.8  |       
|                                                             |                                                                                   |                                       |                          |       |       |      
|Cash and cash equivalents  end of period                    |                                                                                   | $                                     | 237.3                    |       |       | $     | 56.4  |       
|                                                             |                                                                                   |                                       |                          |       |       |      



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FISHER SCIENTIFIC INTERNATIONAL INC.





STATEMENT OF CHANGES IN STOCKHOLDERS EQUITY


(In millions, except share data)


(Unaudited)


|                           |                                         |              |             |            |           |   |     |           |           |   |             |      |  |             |       |       |                 |   |         |        |   |   |        |      |  |        |       |       |       |  |         |   |  |   |      |   |  |   |         |       |  
|-------------------------- | --------------------------------------- | ------------ | ----------- | ---------- | --------- | - | --- | --------- | --------- | - | ----------- | ---- |  | ----------- | ----- | ----- | --------------- | - | ------- | ------ | - | - | ------ | ---- |  | ------ | ----- | ----- | ----- |  | ------- | - |  | - | ---- | - |  | - | ------- | ----- | -
|                           |                                         |              |             | Capital in |           |   |     |           | Shares to |   |             |      |  | Accumulated |       |       | Treasury Stock, |   |         |       
|                           |                                         | Common Stock |             |            | Excess of |   |     | Shares    |           |   | be          |      |  |             |       | Other |                 |   | at Cost |        |   |  
|                           |                                         |              |             |            | Par       |   |     | Deposited |           |   | Distributed |      |  | Accumulated |       |       | Comprehensive   |   |         |        |   |   |       
|                           |                                         | Shares       |             |            | Amount    |   |     | Value     |           |   | in Trust    |      |  | from Trust  |       |       | Deficit         |   |         | Income |   |   | Shares |      |  | Amount |       |       | Total | 
|                           |                                         |              |             |            |           |   |     |           |           |   |             |      |  |             |       |       |                 |   |         |        |   |   |        |      |  |        |       |       |       | 
|Balance at January 1, 2005 |                                         |              | 118,928,952 |            |           | $ | 1.1 |           |           | $ | 4,006.1     |      |  | $           | (24.0 | )     |                 | $ | 24.0    |        |   | $ | (260.1 | )    |  | $      | 126.9 |       |       |  | 254,975 |   |  | $ | (4.0 | ) |  | $ | 3,870.0 |      
|                           | Net income                              |              |             |           |           |   |     |          |           |   |             |     |  |             |       |      |                 |   |         |       |   |   |        | 77.0 |  |        |       |      |       |  |         |  |  |   |      |  |  |   |         | 77.0  |  
|                           | Foreign currency translation adjustment |              |             |           |           |   |     |          |           |   |             |     |  |             |       |      |                 |   |         |       |   |   |        |     |  |        |       | (35.8 | )     |  |         |  |  |   |      |  |  |   |         | (35.8 | )
|                           | Unrealized investment losses            |              |             |           |           |   |     |          |           |   |             |     |  |             |       |      |                 |   |         |       |   |   |        |     |  |        |       | (0.8  | )     |  |         |  |  |   |      |  |  |   |         | (0.8  | )
|                           | Unrealized gain on cash flow hedges     |              |             |           |           |   |     |          |           |   |             |     |  |             |       |      |                 |   |         |       |   |   |        |     |  |        |       | 3.0   |       |  |         |  |  |   |      |  |  |   |         | 3.0   |  
|                           | Proceeds from stock options             |              |             | 1,275,268  |           |   |     |          |           |   |             | 42.2 |  |             |       |      |                 |   |         |       |   |   |        |     |  |        |       |      |       |  |         |  |  |   |      |  |  |   |         | 42.2  |  
|                           | Tax benefit from stock options          |              |             |           |           |   |     |          |           |   |             | 4.7  |  |             |       |      |                 |   |         |       |   |   |        |     |  |        |       |      |       |  |         |  |  |   |      |  |  |   |         | 4.7   |  
|                           | Trust activity                          |              |             |           |           |   |     |          |           |   |             |     |  |             |       | 3.8   |                 |   |         | (3.8   | ) |   |        |     |  |        |       |      |       |  |         |  |  |   |      |  |  |   |         |      |  
|                           |                                         |              |             |            |           |   |     |           |           |   |             |      |  |             |       |       |                 |   |         |        |   |   |        |      |  |        |       |       |       | 
|Balance at March 31, 2005  |                                         |              | 120,204,220 |            |           | $ | 1.1 |           |           | $ | 4,053.0     |      |  | $           | (20.2 | )     |                 | $ | 20.2    |        |   | $ | (183.1 | )    |  | $      | 93.3  |       |       |  | 254,975 |   |  | $ | (4.0 | ) |  | $ | 3,960.3 |      
|                           |                                         |              |             |            |           |   |     |           |           |   |             |      |  |             |       |       |                 |   |         |        |   |   |        |      |  |        |       |       |       | 



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FISHER SCIENTIFIC INTERNATIONAL INC.





NOTES TO FINANCIAL STATEMENTS


(Unaudited)




|         |                         
|-------- | ------------------------
|Note 1  | Formation and Background





| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | 1. Scientific products and services segment provides
    products and services primarily to entities conducting
    scientific research, including drug discovery and drug
    development, quality and process control and basic research and
    development. This segment manufactures and distributes a broad
    range of biochemicals and bioreagents; organic and inorganic
    chemicals; sera; cell culture media; sterile liquid-handling
    systems; microbiology media and related products; scientific
    consumable products, instruments and equipment; safety and
    personal protection products; and other consumables and
    supplies. Additionally, this segment provides services to
    pharmaceutical and biotechnology companies engaged in clinical
    trials, including specialized packaging, over-encapsulation,
    labeling and distribution for phase III and phase IV
    clinical trials, as well as combinatorial chemistry,
    custom-chemical synthesis, supply-chain management and a number
    of other services.
|
| | 2. Healthcare products and services segment
    manufactures and distributes a wide array of diagnostic kits and
    reagents, equipment, instruments, medical devices and other
    consumable products to hospitals and group-purchasing
    organizations, clinical laboratories, reference laboratories,
    physicians offices and original equipment manufacturers
    located primarily in the U.S. This segment also provides
    outsourced manufacturing services for diagnostic reagents,
    calibrators and controls to the healthcare and pharmaceutical
    industries.                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|
| | 3. Laboratory workstations segment manufactures and
    sells laboratory workstations and fume hoods and provides
    lab-design services for pharmaceutical and biotechnology
    customers, colleges, universities and secondary schools,
    hospitals and reference labs.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 



|         |                         
|-------- | ------------------------
|Note 2  | Stock-Based Compensation



7



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##### Table of Contents



FISHER SCIENTIFIC INTERNATIONAL INC.


NOTES TO FINANCIAL STATEMENTS  (Continued)




|                                                                                                                 |         |              |      |      |      |   |      |      | 
|---------------------------------------------------------------------------------------------------------------- | ------- | ------------ | ---- | ---- | ---- | - | ---- | ---- | 
|                                                                                                                 |         | Three Months |     
|                                                                                                                 |         | Ended        |     
|                                                                                                                 |         | March 31,    |     
|                                                                                                                 |         |              |     
|                                                                                                                 |         | 2005         |      |      | 2004 |  
|                                                                                                                 |         |              |      |      |      |  
|Net income, as reported                                                                                          |         | $            | 77.0 |      |      | $ | 34.6 |     
|Stock-based employee compensation included in net income, net of
    tax                                         |         |              | 0.5  |      |      |   |     |     
|Deduct: stock-based compensation expense determined using fair
    value based method for all awards, net of tax |         |              | (4.9 | )    |      |   | (7.3 | )   
|                                                                                                                 |         |              |      |      |      |  
|Net income, pro forma                                                                                            |         | $            | 72.6 |      |      | $ | 27.3 |     
|                                                                                                                 |         |              |      |      |      |  
|Net income per common share                                                                                      |         |              |      |      |      |   |      |     
|As reported:                                                                                                     |         |              |      |      |      |   |      |     
|                                                                                                                 | Basic   |              | $    | 0.64 |      |   | $    | 0.54 | 
|                                                                                                                 |         |              |      |      |      |  
|                                                                                                                 | Diluted |              | $    | 0.61 |      |   | $    | 0.51 | 
|                                                                                                                 |         |              |      |      |      |  
|Pro forma:                                                                                                       |         |              |      |      |      |   |      |     
|                                                                                                                 | Basic   |              | $    | 0.61 |      |   | $    | 0.43 | 
|                                                                                                                 |         |              |      |      |      |  
|                                                                                                                 | Diluted |              | $    | 0.57 |      |   | $    | 0.40 | 
|                                                                                                                 |         |              |      |      |      |  



|                        |  |              |         |   |      |  |         |  
|----------------------- |  | ------------ | ------- | - | ---- |  | ------- | -
|                        |  | Three Months |        
|                        |  | Ended        |        
|                        |  | March 31,    |        
|                        |  |              |        
|                        |  | 2005         |         |   | 2004 | 
|                        |  |              |         |   |      | 
|Risk free interest rate |  |              | 3.9     | % |      |  | 3.0     | %
|Expected life of option |  |              | 5 years |   |      |  | 5 years |  
|Volatility              |  |              | 36      | % |      |  | 41      | %
|Expected dividend yield |  |              | 0       | % |      |  | 0       | %



|         |                      
|-------- | ---------------------
|Note 3  | Business Combinations





8



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##### Table of Contents



FISHER SCIENTIFIC INTERNATIONAL INC.


NOTES TO FINANCIAL STATEMENTS  (Continued)




|                            |         |                    |         |      | 
|--------------------------- | ------- | ------------------ | ------- | ---- | 
|                            |         | Three Months Ended |        
|                            |         | March 31, 2004     |        
|                            |         |                    |        
|Sales                       |         | $                  | 1,258.7 |     
|Net income                  |         | $                  | 30.5    |     
|Net income per common share |         |                    |         |     
|                            | Basic   |                    | $       | 0.27 | 
|                            | Diluted |                    | $       | 0.25 | 







|         |            
|-------- | -----------
|Note 4  | Inventories



|                  |       |           |       |       |              |   |       |       | 
|----------------- | ----- | --------- | ----- | ----- | ------------ | - | ----- | ----- | 
|                  |       | March 31, |       |       | December 31, |  
|                  |       | 2005      |       |       | 2004         |  
|                  |       |           |       |       |              |  
|Raw materials     |       | $         | 131.2 |       |              | $ | 136.1 |      
|Work in process   |       |           | 62.7  |       |              |   | 65.2  |      
|Finished products |       |           | 406.3 |       |              |   | 421.1 |      
|                  |       |           |       |       |              |  
|                  | Total |           | $     | 600.2 |              |   | $     | 622.4 | 
|                  |       |           |       |       |              |  



|         |                 
|-------- | ----------------
|Note 5  | Accounts Payable



9



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FISHER SCIENTIFIC INTERNATIONAL INC.


NOTES TO FINANCIAL STATEMENTS  (Continued)




|         |     
|-------- | ----
|Note 6  | Debt



|                                                                                                                                                                                |                      |      |       |         |      |   |       |         | 
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -------------------- | ---- | ----- | ------- | ---- | - | ----- | ------- | 
|                                                                                                                                                                                |                      | 2005 |       |         | 2004 |  
|                                                                                                                                                                                |                      |      |       |         |      |  
|Term Facility                                                                                                                                                                   |                      | $    | 389.5 |         |      | $ | 393.0 |        
|Other debt                                                                                                                                                                      |                      |      | 59.3  |         |      |   | 60.8  |        
|2.50% Convertible Senior Notes due 2023, convertible at
    $47.46 per share                                                                                                    |                      |      | 300.0 |         |      |   | 300.0 |        
|Floating Rate Convertible Senior Debentures due 2033,
    convertible at $59.09 per share                                                                                       |                      |      | 344.6 |         |      |   | 344.6 |        
|3.25% Convertible Senior Subordinated Notes due 2024,
    convertible at $80.40 per share                                                                                       |                      |      | 330.0 |         |      |   | 330.0 |        
|81/8% Senior
    Subordinated Notes due 2012 (includes $5.7 million and
    $5.9 million of unamortized debt premium at March 31,
    2005 and December 31, 2004, respectively) |                      |      | 309.7 |         |      |   | 309.9 |        
|8% Senior Subordinated Notes due 2013 (includes
    $10.1 million and $10.3 million of unamortized debt
    premium at March 31, 2005 and December 31, 2004,
    respectively)  |                      |      | 310.1 |         |      |   | 310.3 |        
|63/4% Senior
    Subordinated Notes due 2014                                                                                                                                    |                      |      | 300.0 |         |      |   | 300.0 |        
|                                                                                                                                                                                |                      |      |       |         |      |  
|                                                                                                                                                                                | Total debt           |      |       | 2,343.2 |      |   |       | 2,348.6 | 
|Less: short-term portion                                                                                                                                                        |                      |      | (57.7 | )       |      |   | (39.4 | )      
|                                                                                                                                                                                |                      |      |       |         |      |  
|                                                                                                                                                                                | Total long-term debt |      | $     | 2,285.5 |      |   | $     | 2,309.2 | 
|                                                                                                                                                                                |                      |      |       |         |      |  







|         |       
|-------- | ------
|Note 7  | Equity





10



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##### Table of Contents



FISHER SCIENTIFIC INTERNATIONAL INC.


NOTES TO FINANCIAL STATEMENTS  (Continued)


Note 8  Divestiture






|                                      |                   |           |      |      |              |   |      |      | 
|------------------------------------- | ----------------- | --------- | ---- | ---- | ------------ | - | ---- | ---- | 
|                                      |                   | March 31, |      |      | December 31, |  
|                                      |                   | 2005      |      |      | 2004         |  
|                                      |                   |           |      |      |              |  
|Accounts receivable, net              |                   | $         | 4.7  |      |              | $ | 3.8  |     
|Inventories                           |                   |           | 3.9  |      |              |   | 3.3  |     
|Other current assets                  |                   |           | 1.8  |      |              |   | 1.7  |     
|Property, plant, and equipment        |                   |           | 3.1  |      |              |   | 3.2  |     
|Goodwill                              |                   |           | 75.8 |      |              |   | 75.8 |     
|Intangible assets                     |                   |           | 6.4  |      |              |   | 6.8  |     
|                                      |                   |           |      |      |              |  
|                                      | Total assets      |           | $    | 95.7 |              |   | $    | 94.6 | 
|                                      |                   |           |      |      |              |  
|Accounts payable                      |                   |           | 1.9  |      |              |   | 1.8  |     
|Accrued and other current liabilities |                   |           | 4.6  |      |              |   | 4.4  |     
|Other liabilities                     |                   |           | 2.1  |      |              |   | 2.1  |     
|                                      |                   |           |      |      |              |  
|                                      | Total liabilities |           | $    | 8.6  |              |   | $    | 8.3  | 
|                                      |                   |           |      |      |              |  



|         |                       
|-------- | ----------------------
|Note 9  | Employee Benefit Plans





|                                                   |                                    |                              |      |                |          |   |      |      |  |   |      |      |   |   |      |      |  
|-------------------------------------------------- | ---------------------------------- | ---------------------------- | ---- | -------------- | -------- | - | ---- | ---- |  | - | ---- | ---- | - | - | ---- | ---- | -
|                                                   |                                    | Three Months Ended March 31, |     
|                                                   |                                    |                              |     
|                                                   |                                    |                              |      | Other          |         
|                                                   |                                    |                              |      | Postretirement |         
|                                                   |                                    | Pension Benefits             |      |                | Benefits |  
|                                                   |                                    |                              |      |                |          |  
|                                                   |                                    | 2005                         |      |                | 2004     |   |      | 2005 |  |   | 2004 |     
|                                                   |                                    |                              |      |                |          |   |      |      |  |   |      |     
|Components of net periodic benefit (income) cost   |                                    |                              |      |                |          |   |      |      |  |   |      |      |   |   |      |     
|Service cost                                       |                                    | $                            | 5.9  |                |          | $ | 3.7  |      |  | $ | 0.1  |      |   | $ | 0.1  |     
|Interest cost                                      |                                    |                              | 8.4  |                |          |   | 5.4  |      |  |   | 0.5  |      |   |   | 0.4  |     
|Expected return on plan assets                     |                                    |                              | (9.8 | )              |          |   | (7.2 | )    |  |   |     |      |   |   |     |     
|Amortization of unrecognized prior service benefit |                                    |                              | 0.3  |                |          |   | 0.3  |      |  |   | (0.4 | )    |   |   | (0.6 | )   
|Recognized net actuarial (gain) loss               |                                    |                              | 1.2  |                |          |   | 0.3  |      |  |   | (0.4 | )    |   |   | (0.4 | )   
|Settlement/curtailment (gain) loss                 |                                    |                              | 0.4  |                |          |   | 0.4  |      |  |   |     |      |   |   |     |     
|                                                   |                                    |                              |      |                |          |   |      |      |  |   |      |     
|                                                   | Net periodic benefit (income) cost |                              | $    | 6.4            |          |   | $    | 2.9  |  |   | $    | (0.2 | ) |   | $    | (0.5 | )
|                                                   |                                    |                              |      |                |          |   |      |      |  |   |      |     

11



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##### Table of Contents



FISHER SCIENTIFIC INTERNATIONAL INC.


NOTES TO FINANCIAL STATEMENTS  (Continued)




|          |                   
|--------- | ------------------
|Note 10  | Earnings Per Share





|                                                                                                     |                   |              |       |     |      |   |      |     | 
|---------------------------------------------------------------------------------------------------- | ----------------- | ------------ | ----- | --- | ---- | - | ---- | --- | 
|                                                                                                     |                   | Three Months |      
|                                                                                                     |                   | Ended        |      
|                                                                                                     |                   | March 31,    |      
|                                                                                                     |                   |              |      
|                                                                                                     |                   | 2005         |       |     | 2004 |  
|                                                                                                     |                   |              |       |     |      |  
|Weighted average common shares outstanding used in computing
    basic net income per common share   |                   |              | 119.6 |     |      |   | 63.6 |    
|Dilutive securities:                                                                                 |                   |              |       |     |      |   |      |    
|                                                                                                     | Stock options(a)  |              |       | 4.8 |      |   |      | 4.6 | 
|                                                                                                     | Convertible notes |              |       | 1.6 |      |   |      | 0.2 | 
|                                                                                                     |                   |              |       |     |      |  
|Weighted average common shares outstanding used in computing
    diluted net income per common share |                   |              | 126.0 |     |      |   | 68.4 |    
|                                                                                                     |                   |              |       |     |      |  
|Basic net income per common share                                                                    |                   | $            | 0.64  |     |      | $ | 0.54 |    
|                                                                                                     |                   |              |       |     |      |  
|Diluted net income per common share                                                                  |                   | $            | 0.61  |     |      | $ | 0.51 |    
|                                                                                                     |                   |              |       |     |      |  






|    |                                                                                                                                                                                                                                                                                 
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(a) | The weighted average amount of outstanding antidilutive common
    stock options and warrants excluded from the computation of
    diluted net income per common share for the three months ended
    March 31, 2005 and 2004 was 1.6 million and
    0.4 million, respectively.



Note 11  Restructuring Activities




12



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##### Table of Contents



FISHER SCIENTIFIC INTERNATIONAL INC.


NOTES TO FINANCIAL STATEMENTS  (Continued)




|                     |                             |               |     |     |         |   |     |          |               |   |           |     |  |   |     |     | 
|-------------------- | --------------------------- | ------------- | --- | --- | ------- | - | --- | -------- | ------------- | - | --------- | --- |  | - | --- | --- | 
|                     |                             | Balance as of |     |     |         |   |     |          | Balance as of |  
|                     |                             | December 31,  |     |     | 2005    |   |     | 2005     |               |   | March 31, |    
|                     |                             | 2004          |     |     | Charges |   |     | Payments |               |   | 2005      |    
|                     |                             |               |     |     |         |   |     |          |               |   |           |    
|Termination benefits |                             | $             | 3.3 |     |         | $ | 7.9 |          |               | $ | 2.6       |     |  | $ | 8.6 |    
|Other charges        |                             |               | 1.5 |     |         |   | 0.4 |          |               |   | 1.1       |     |  |   | 0.8 |    
|                     |                             |               |     |     |         |   |     |          |               |   |           |    
|                     | Total restructuring accrual |               | $   | 4.8 |         |   | $   | 8.3      |               |   | $         | 3.7 |  |   | $   | 9.4 | 
|                     |                             |               |     |     |         |   |     |          |               |   |           |    





|          |                    
|--------- | -------------------
|Note 12  | Segment Information





|                                  |                   |              |       |           |              |   |       |         |  |   |       |       |  |   |       |      | 
|--------------------------------- | ----------------- | ------------ | ----- | --------- | ------------ | - | ----- | ------- |  | - | ----- | ----- |  | - | ----- | ---- | 
|                                  |                   |              |       | Operating |             
|                                  |                   | Sales        |       |           | Income       |  
|                                  |                   | Three Months |       |           | Three Months |  
|                                  |                   | Ended        |       |           | Ending       |  
|                                  |                   | March 31,    |       |           | March 31     |  
|                                  |                   |              |       |           |              |  
|                                  |                   | 2005         |       |           | 2004         |   |       | 2005    |  |   | 2004  |      
|                                  |                   |              |       |           |              |   |       |         |  |   |       |      
|Scientific products and services  |                   | $            | 983.8 |           |              | $ | 742.0 |         |  | $ | 129.4 |       |  | $ | 66.6  |     
|Healthcare products and services  |                   |              | 336.7 |           |              |   | 227.5 |         |  |   | 43.0  |       |  |   | 10.4  |     
|Laboratory workstations           |                   |              | 46.3  |           |              |   | 38.4  |         |  |   | 0.2   |       |  |   | (0.2  | )   
|Eliminations                      |                   |              | (15.6 | )         |              |   | (4.8  | )       |  |   |      |       |  |   |      |     
|                                  |                   |              |       |           |              |   |       |         |  |   |       |      
|                                  | Segment sub-total |              |       | 1,351.2   |              |   |       | 1,003.1 |  |   |       | 172.6 |  |   |       | 76.8 | 
|Other charges:                    |                   |              |       |           |              |   |       |         |  |   |       |       |  |   |       |     
|Restructuring expense             |                   |              |      |           |              |   |      |         |  |   | (8.3  | )     |  |   |      |     
|Acquisition and integration costs |                   |              |      |           |              |   |      |         |  |   | (11.4 | )     |  |   |      |     
|Inventory step-up                 |                   |              |      |           |              |   |      |         |  |   | (17.1 | )     |  |   | (10.2 | )   
|                                  |                   |              |       |           |              |   |       |         |  |   |       |      
|                                  | Total             |              | $     | 1,351.2   |              |   | $     | 1,003.1 |  |   | $     | 135.8 |  |   | $     | 66.6 | 
|                                  |                   |              |       |           |              |   |       |         |  |   |       |      





|          |                                 
|--------- | --------------------------------
|Note 13  | Recent Accounting Pronouncements

Inventory Costs,


13



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##### Table of Contents



FISHER SCIENTIFIC INTERNATIONAL INC.


NOTES TO FINANCIAL STATEMENTS  (Continued)




Share-Based Payment Accounting for
Stock Issued to Employees.




Note 14  Subsequent Events


1 8 1 8






14



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##### Table of Contents








|         |                                                                                          
|-------- | -----------------------------------------------------------------------------------------
|Item 2  | Managements Discussion and Analysis of Financial
    Condition and Results of Operations



Results of Operations




| |      
| | -----
| | Sales



|                                 |       |                              |       |         |        |  |      |       |       |   |        |         |  |  |       |      |  
|-------------------------------- | ----- | ---------------------------- | ----- | ------- | ------ |  | ---- | ----- | ----- | - | ------ | ------- |  |  | ----- | ---- | -
|                                 |       | Three Months Ended March 31, |      
|                                 |       |                              |      
|                                 |       | 2005                         |       |         | 2004   | 
|                                 |       |                              |       |         |        | 
|                                 |       |                              |       | Sales   |        |  |      |       | Sales |  
|                                 |       | Sales                        |       |         | Growth |  |      | Sales |       |   | Growth |        
|                                 |       |                              |       |         |        |  |      |       |       |   |        |        
|Scientific products and services |       | $                            | 983.8 |         |        |  | 32.6 | %     |       | $ | 742.0  |         |  |  | 29.7  | %   
|Healthcare products and services |       |                              | 336.7 |         |        |  | 48.0 | %     |       |   | 227.5  |         |  |  | 5.3   | %   
|Laboratory workstations          |       |                              | 46.3  |         |        |  | 20.6 | %     |       |   | 38.4   |         |  |  | (23.0 | )%  
|Eliminations                     |       |                              | (15.6 | )       |        |  |      |       |       |   | (4.8   | )       |  |  |       |     
|                                 |       |                              |       |         |        |  |      |       |       |   |        |        
|                                 | Total |                              | $     | 1,351.2 |        |  |      | 34.7  | %     |   | $      | 1,003.1 |  |  |       | 20.4 | %
|                                 |       |                              |       |         |        |  |      |       |       |   |        |        

Consolidated.


Scientific Products and Services.


Healthcare Products and Services.


Laboratory Workstations.


15



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##### Table of Contents







| |                 
| | ----------------
| | Operating Income



|                                  |                  |                              |       |              |          |   |       |      |  |  |      |      |   |  |      |     |  
|--------------------------------- | ---------------- | ---------------------------- | ----- | ------------ | -------- | - | ----- | ---- |  |  | ---- | ---- | - |  | ---- | --- | -
|                                  |                  | Three Months Ended March 31, |      
|                                  |                  |                              |      
|                                  |                  |                              |       | Operating    |         
|                                  |                  |                              |       | Income as    |         
|                                  |                  |                              |       | a Percentage |         
|                                  |                  | Operating Income             |       |              | of Sales |  
|                                  |                  |                              |       |              |          |  
|                                  |                  | 2005                         |       |              | 2004     |   |       | 2005 |  |  | 2004 |     
|                                  |                  |                              |       |              |          |   |       |      |  |  |      |     
|Scientific products and services  |                  | $                            | 129.4 |              |          | $ | 66.6  |      |  |  | 13.2 | %    |   |  | 9.0  | %  
|Healthcare products and services  |                  |                              | 43.0  |              |          |   | 10.4  |      |  |  | 12.8 | %    |   |  | 4.6  | %  
|Laboratory workstations           |                  |                              | 0.2   |              |          |   | (0.2  | )    |  |  | 0.4  | %    |   |  | (0.5 | )% 
|Eliminations                      |                  |                              |      |              |          |   |      |      |  |  |      |      |   |  |      |    
|                                  |                  |                              |       |              |          |   |       |      |  |  |      |     
|                                  | Segment subtotal |                              |       | 172.6        |          |   |       | 76.8 |  |  |      | 12.8 | % |  |      | 7.7 | %
|Other charges:                    |                  |                              |       |              |          |   |       |      |  |  |      |      |   |  |      |    
|Restructuring expense             |                  |                              | (8.3  | )            |          |   |      |      |  |  |      |      |   |  |      |    
|Acquisition and integration costs |                  |                              | (11.4 | )            |          |   |      |      |  |  |      |      |   |  |      |    
|Inventory step-up                 |                  |                              | (17.1 | )            |          |   | (10.2 | )    |  |  |      |      |   |  |      |    
|                                  |                  |                              |       |              |          |   |       |      |  |  |      |     
|                                  | Total            |                              | $     | 135.8        |          |   | $     | 66.6 |  |  |      | 10.1 | % |  |      | 6.6 | %
|                                  |                  |                              |       |              |          |   |       |      |  |  |      |     

Consolidated.


Scientific Products and Services.


Healthcare Products and Services.


16



---



##### Table of Contents





Laboratory Workstations.


Interest Expense




Income Tax Provision




Liquidity and Capital
Resources










17



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##### Table of Contents







|                                                              |                               |                        |         |           |        |   |      |           |           |   |           |       |  |         |       |       |  |   |         |         | 
|------------------------------------------------------------- | ----------------------------- | ---------------------- | ------- | --------- | ------ | - | ---- | --------- | --------- | - | --------- | ----- |  | ------- | ----- | ----- |  | - | ------- | ------- | 
|                                                              |                               | Payments Due by Period |        
|                                                              |                               |                        |        
|                                                              |                               |                        |         | Less than |        |   |      |           | More than |  
|                                                              |                               | Total                  |         |           | 1 Year |   |      | 1-3 Years |           |   | 3-5 Years |       |  | 5 Years |      
|                                                              |                               |                        |         |           |        |   |      |           |           |   |           |       |  |         |      
|Debt, including short-term debt(a)                            |                               | $                      | 2,305.0 |           |        | $ | 40.8 |           |           | $ | 54.0      |       |  | $       | 179.6 |       |  | $ | 2,030.6 |        
|Capital lease obligations                                     |                               |                        | 22.4    |           |        |   | 16.9 |           |           |   | 3.2       |       |  |         | 2.3   |       |  |   |        |        
|Operating leases                                              |                               |                        | 227.1   |           |        |   | 43.9 |           |           |   | 69.4      |       |  |         | 47.0  |       |  |   | 66.8    |        
|Purchase obligations(b)                                       |                               |                        | 2.1     |           |        |   | 1.8  |           |           |   | 0.3       |       |  |         |      |       |  |   |        |        
|Other long-term liabilities reflected on the balance sheet(c) |                               |                        | 1.2     |           |        |   | 0.3  |           |           |   | 0.7       |       |  |         | 0.2   |       |  |   |        |        
|                                                              |                               |                        |         |           |        |   |      |           |           |   |           |       |  |         |      
|                                                              | Total Contractual Obligations |                        | $       | 2,557.8   |        |   | $    | 103.7     |           |   | $         | 127.6 |  |         | $     | 229.1 |  |   | $       | 2,097.4 | 
|                                                              |                               |                        |         |           |        |   |      |           |           |   |           |       |  |         |      






|    |                                                                                                                                                        
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------
|(a) | Amounts represent the expected cash payments for our debt and do
    not include any unamortized discounts or premiums and deferred
    issuance costs.



|    |  |                                                                                                                                                                                                                                                                                                                                                                                                                            
|--- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(b) |  | Purchase obligations include agreements to purchase goods or
    services that are enforceable and legally binding and that
    specify all significant terms, including: fixed or minimum
    quantities to be purchased; fixed, minimum or variable price
    provisions; and the approximate timing of the transaction.
    Purchase obligations exclude agreements that are cancelable at
    any time without penalty.
|   
|(c) |  | Includes only long-term liabilities where both the timing and
    amount of payment streams are known.                                                                                                                                                                                                                                                                                                                     





Critical Accounting Policies/ Estimates




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##### Table of Contents





Recent Accounting Pronouncements









|         |                                                               
|-------- | --------------------------------------------------------------
|Item 3  | Quantitative and Qualitative Disclosures About Market
    Risk









| |                              
| | -----------------------------
| | Interest Rate Risk Management





| |                         
| | ------------------------
| | Currency Risk Management



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##### Table of Contents







| |                          
| | -------------------------
| | Commodity Risk Management










|         |                        
|-------- | -----------------------
|Item 4  | Controls and Procedures



20



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##### Table of Contents






PART II  OTHER INFORMATION







|         |                  
|-------- | -----------------
|Item 5  | Other Information








|         |         
|-------- | --------
|Item 6  | Exhibits





| |                 |                                                                                                                                                                                                                                                                                             
| | --------------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Exhibit  10.01: | Share Sale and Purchase Agreement Between Perbio Science
    International Netherlands B.V. and Cidron Group AB.                                                                                                                                                                            
|
| | Exhibit  10.02: | Fisher Scientific International Inc. 2005 Equity and Incentive
    Plan, effective as of May 6, 2005. Included as
    Exhibit A to the Companys definitive proxy statement
    filed with the Securities and Exchange Commission on
    April 4, 2005 and incorporated herein by reference.
|
| | Exhibit  10.03: | Second Amendment to the Fisher Scientific International Inc.
    Executive Retirement and Savings Program.                                                                                                                                                                                  
|
| | Exhibit  10.04: | First Amendment to the Fisher Scientific International Inc.
    Retirement Plan for non-employee directors.                                                                                                                                                                                 
|
| | Exhibit  31.01: | Certification pursuant to Section 302 of the Sarbanes-Oxley
    Act of 2002.                                                                                                                                                                                                                
|
| | Exhibit  31.02: | Certification pursuant to Section 302 of the Sarbanes-Oxley
    Act of 2002.                                                                                                                                                                                                                
|
| | Exhibit  32.01: | Certification pursuant to 18 U.S.C. Section 1350, as
    adopted pursuant to Section 906 of the Sarbanes-Oxley Act
    of 2002.                                                                                                                                                             
|
| | Exhibit  32.02: | Certification pursuant to 18 U.S.C. Section 1350, as
    adopted pursuant to Section 906 of the Sarbanes-Oxley Act
    of 2002.                                                                                                                                                             

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##### Table of Contents






SIGNATURE






| |                                             
| | --------------------------------------------
| | Fisher Scientific
    International Inc.    
|
| | /s/ Kevin P. Clark                          
| |                                             
| | Kevin P. Clark                              
| | Vice President and Chief Financial Officer  
| | (Principal Financial and Accounting Officer)



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